Your company depends on international shipping to thrive. Thanks to cross border commerce, you are selling products around the world. How you get those products to customers matters. So does the amount you pay for shipping. Every penny saved represents a higher profit margin and the ability to be more competitive with your pricing.
There is no doubt that international shipping can be expensive. It doesn’t have to be. Just by employing a common-sense approach, companies can reduce shipping expenses to the bare minimum. With that in mind, here are three things any company can do to reduce its shipping spend:
1. Choose a Door-to-Door Shipper
Our first tip is to use a shipping partner that offers door-to-door service. This type of shipper is sometimes known as a hybrid shipper. DHL is the perfect example inasmuch as the German company partners with a network of authorized resellers, like Preferred Shipping, to guarantee door-to-door delivery.
Let’s say you choose to ship overseas using DHL International Ecommerce Shipping. Let us also say that Preferred Shipping is your local DHL reseller. We come directly to your location to pick up your packages on a regular schedule. From there, they make their way throughout the entire DHL system to arrive at your customers’ locations. Everything is managed by authorized network providers.
How does this save you money? By eliminating the need to hire multiple shipping partners with a variety of rates. You also don’t have to invest your own time, effort, and resources taking your packages to a shipping center. That saves even more money.
2. Correctly Package Items
Next up is correctly packaging your items. Unless you have arranged for flat-rate shipping, the size and weight of each package matters. Both measurements go into determining how much you pay. Therefore, it doesn’t make sense to use larger packaging than you need. It also doesn’t make sense to add unnecessary weight.
If your company uses boxes, opt for boxes that are as close to the dimensions of your products as possible. This could mean having to invest in several different box sizes but saving enough money could make the hassle worth it. Also consider not using boxes if they are not necessary. If you can ship in padded envelopes or other less bulky containers, you could save even more.
3. Invest in Shipping Insurance
Finally, shipping becomes twice as expensive when you have to accept a returned item. Now you have paid for shipping in both directions. Investing in shipping insurance solves that problem. If your business is one for which return rates are fairly high and consistent, shipping insurance is a no-brainer.
A good shipping insurance policy also protects you against package damage and any associated liability claims. You may never need it, but it is nice protection to have in a world where litigation occurs too easily. The best part about shipping insurance is that it is comparably cost effective. Research a few policies and see what they would cost as compared to what you now pay to cover returned items.
There are other ways to reduce shipping costs including choosing a carrier with an online platform, negotiating flat-rate shipping for bulk orders, and utilizing a third-party fulfillment service rather than managing all the labor in-house. One way or another, reducing what you pay for shipping is good for the bottom line.
Preferred Shipping is a DHL Authorized Reseller. We offer a variety of services that could ultimately save your company money. Do not hesitate to inquire about working with us as your international shipping partner.
Feel free to contact us here.